Why the Dow Just Smiled at Trump’s Fed Drama: You Won’t Believe This!

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Our traders, ever the spectators of this riveting opera, turned their gaze to the renewed squabbles between the White House and the Federal Reserve. Trump boldly proclaimed he had no imminent plans to “fire” Powell, but then couldn’t resist the urge to sprinkle in that the Chair was doing a “terrible job.” Ah, the mixed messages—will it ever end? 🍿

In the meantime, Trump’s relentless calls for lower interest rates echo through the halls of the Fed, his ambitions to stimulate the economy resembling a small child begging for just one more cookie. The White House has even aimed its darts at a $2.5 billion renovation plan for two buildings in Washington, apparently not a fan of construction contracts.

The Fed, in its careful deliberation, remains hesitant to adjust those rates, fearing persistent inflation like an old cat wary of a new puppy. Recent CPI data only stoked those flames, showcasing that consumers have started to feel the delightful prick of Trump’s tariffs. In such an atmosphere, rate cuts seem as likely as Trump attending a yoga class—unless, of course, there’s a significant shake-up in Fed leadership.

Big banks profit despite fears over inflation

Yet amidst this tempest, the towering titans of banking have emerged victorious, their robust earnings lifting the market like a superhero with a caffeine boost. Goldman Sachs, Bank of America, and Morgan Stanley reported results that exceeded the wildest dreams and fantasies of creditors. Their market share is growing faster than a weed in a neglected garden, fueled by robust loan growth. 🌱

This mighty growth suggests a sweet atmosphere for the hefty financial institutions, which seem to revel in their capital market exposure. Notably, Goldman Sachs has strutted into the limelight with a 22% rise year-to-date, while JPMorgan has not been far behind, boasting a 19% gain during the same period. Ah, the joys of capitalism! 😎

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2025-07-16 20:46